Greaves Cotton swings to loss as depreciation and other income weigh
Revenue grew +20.72% QoQ and margin edged up, but higher depreciation and a negative other-income contribution pushed profit before tax into the red.
Filed 29 Oct 2026, 14:42 IST · Greaves Cotton Ltd (GREAVESCOT)
Key takeaways
- Greaves Cotton moved to a consolidated net loss of Rs 29.81 cr as depreciation rose +88.66% QoQ and other income swung to a loss.
- Operating margin improved 0.46 percentage points QoQ to 6.24%, but remained 5.84 percentage points below the Industrials peer median.
- The stock rose +3.87% on the results day, with trading volume at 3.52x the reference level.
Price around the results
Revenue momentum did not reach reported profit
Consolidated revenue grew +20.72% QoQ to Rs 1,175.91 cr, while expenses rose +20.13%, allowing operating profit to increase +30.23%. The improvement stopped below the operating line: depreciation rose +88.66% and interest increased +20.48%, while other income fell from Rs 10.94 cr to negative Rs 21.58 cr. As a result, profit before tax swung from Rs 27.05 cr to a loss of Rs 15.91 cr.
Margin improved, but Greaves remained below peers
Operating margin widened 0.46 percentage points QoQ because revenue grew slightly faster than expenses. That gain was outweighed at the reported-profit level by higher depreciation and the reversal in other income, which represented 135.64% of profit before tax on the comparison basis. The tax-rate change of 164.60 percentage points is distorted by the move from profit to loss, so the lower tax charge did not prevent a consolidated net loss of Rs 29.81 cr.
Electric mobility volumes led the operating update
Management said Greaves Electric Mobility recorded its highest-ever quarterly volumes in Q2 FY27, while H1 E2W sales reached 62,944 units, up +116% year on year. The company said it had more than 20,000 Ampere vehicles operating for a food service major and had opened 10 touchpoints in Nepal. Management also said manufacturing facilities had adequate capacity headroom for a mid-term volume ramp-up, and that Greaves Electric Mobility plans to enter Sri Lanka in Q3 FY27.
The market reaction was positive, with no history benchmark
The stock gained +3.87% on 29 October, including a +0.23% opening gap, and outperformed the market by +2.82% at the reference point. Volume was 3.52x the reference level. There is no recent-results reaction history in the available record, so the move cannot be classified as ordinary or unusual for Greaves Cotton.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,176 cr | ₹974 cr | +20.72% |
| Other income | ₹-22 cr | ₹11 cr | — |
| Expenses | ₹1,103 cr | ₹918 cr | +20.13% |
| Operating profit | ₹73 cr | ₹56 cr | +30.23% |
| Operating margin (%) | 6.24% | 5.78% | — |
| Interest | ₹14 cr | ₹12 cr | +20.48% |
| Depreciation | ₹53 cr | ₹28 cr | +88.66% |
| Profit before tax | ₹-16 cr | ₹27 cr | — |
| Tax | ₹14 cr | ₹21 cr | -33.46% |
| Net profit | ₹-30 cr | ₹6 cr | — |
| EPS (₹) | ₹0.20 | ₹1.11 | -81.98% |
Operating margin of 6.24% compares with a Industrials sector median of 12.08% across 61 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.87% | +2.82% |
Volume on the results session was 3.52× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- GEML recorded its highest-ever quarterly volumes to date in Q2 FY27.
- GEML sold 62,944 E2W units in H1 FY27, up 116% year on year.
- GEML expanded its Nepal presence by opening 10 touchpoints.
Guidance & outlook
- The company says its manufacturing facilities have adequate capacity headroom to support a mid-term volume ramp-up.
- Greaves Electric Mobility plans to enter Sri Lanka in Q3 FY27.
Expansion
- Greaves completed the 100% acquisition of Excel Controlinkage for ₹113 crore.
- Greaves fully subscribed to GEML’s ₹331 crore rights issue in July 2026.
New products
- Greaves launched the larger G470A engine platform as part of next-generation product development.
New initiatives
- GFL launched a step-up EMI programme for the festive season.
- GFL launched an E3W L5 leasing product in September 2026.
- GEML has built a fleet presence through more than 20,000 Ampere vehicles running for a food service major.
Competition
- GEML reached a peak E2W market share of 5.6% in June 2026.
- GEML is ranked among the top three OEMs in more than 300 RTOs.
Problems & risks
- Industrial Solutions revenue declined 2% year on year in Q2 FY27.
- Industrial Solutions revenue declined 5% year on year in H1 FY27.
What to watch
- Whether operating margin holds above 6.24% as the volume ramp-up progresses.
- Whether depreciation remains elevated after rising +88.66% QoQ.
- Whether other income recovers from negative Rs 21.58 cr without relying on tax-rate changes.